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AUDIT REPORT 
 
; 
 
RABUN COUNTY BOARD OF EDUCATION 
 
li 
 
CLAYTON,GEORGIA 
 
-----YE-AR~E_ND_E_D_JU_N_ E 3_0,_1_9_99---~ 
 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET 
ATLANTA, GEORGIA 30334-8400 
 
 RABUN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
7 
 
D NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
8 
 
ADDillONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
18 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
19 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
20 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
21 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
22 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
23 
 
K 
 
FIDUCIARY FUND TYPE 
 
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILmES 
 
AGENCY FUNDS 
 
24 
 
 RABUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION!  
 
FINANCIAL 
 
ADDIDONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
26 
 
2 SCHEDULEOFSTATEREVENUE 
 
28 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
29 
 
4 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
30 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
5 
 
OVERALL 
 
31 
 
6 
 
BYPROGRAM 
 
32 
 
SECTION IT 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH O:MB CIRCULAR A-133 
 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTIONIV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 w. RUSSELL 
 
HINTON 
 
STATE AUDITOR 
 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 14, 2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe Rabun County Board ofEducation 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE 
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general purpose financial statements of the Rabun County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Rabun County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards.and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
* The general purpose financial statements of the Board did not contain a General Fixed Assets 
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
 
99ARL-13 
 
 * School activity accounts maintained at the individual schools are not included in the general purpose 
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
fu our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Rabun County Board ofEducation as ofJune 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. 
fu accordance with Government Auditing Standards, we have also issued our report dated April 14, 2000, on our consideration of the Rabun County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. 
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Rabun County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
(1).~. 
R ssell W. Hinton State Auditor 
RWH:gp 99ARL-13 
 
 RABUNCOUNTYBOARDOFEDUCATION 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1999 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 3,821,332.42 
 
$ 2,714,254.00 
 
1,372,379.44 $ 
 
370,130.55 
 
14,740.43 4,648.34 
 
Total Assets 
 
$ 
 
511931711.86 $ 
 
389,519.32 $ 2,714,254.00 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Funds Held for Others 
- Capital Lease Agreements 
General Obligation Bonds Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Bus Replacement For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
$ 
 
298,002.95 
 
1,074,892.94 
 
197,583.01 16,064.44 82,260.88 92.24 $ 
 
404,260.15 
 
$ 1,372,895.89 $ 296,000.57 $ 
 
404,260.15 
 
$ 
 
73,304.00 
 
$ 
3,747,511.97 $ 3,820,815.97 $ 
 
14,740.43 4,648.34 
$ 
74,129.98 
93,518.75 $ 
 
1,284,282.89 21,900.00 
1,003,810.96 
2,309.993.85 
 
Total Liabilities and Fund Equity 
 
$ s, 193,711.86 $ 
 
The notes to the general purpose financial statements are an integral part of this statement 
-2- 
 
389,519.32 $ 2,714,254.00 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 1999 
 
JUNE 30, 1998 
 
$ 2,158,030.37 $ 
 
74,997.66 
 
$ 8,768,614.45 $ 8,103,857.79 
 
327,546.82 
 
2,070,056.81 
 
1,598,151.19 
 
$ 2,485,577.19 
 
14,740.43 4,648.34 
2,485,577.19 
 
10,031.38 4,132.18 
740,748.51 
 
1,814,422.81 347,705.34 
 
1,814,422.81 347,705.34 
 
3,559,251.49 12,704.62 
 
$ 2,485,577.19 $ 
 
74,997.66 $ 4,647,705.34 $ 15,505,765.37 $ 14,028,877.16 
 
$ 
 
197,583.01 
 
314,067.39 $ 
 
291,802.65 
 
1,157,153.82 
 
1,023,467.04 
 
92.24 
 
404,260.15 
 
74,000.00 
 
$ 
 
74,997.66 
 
74,997.66 
 
20,852.40 
 
$ 347,705.34 
 
347,705.34 
 
12,704.62 
 
4,300,000.00 
 
4,300.000.00 
 
4,300.000.00 
 
$ 
 
74,997.66 $ 4.647.705.34 $ 6.795.859.61 $ 5.722.826.71 
 
$ 2,485,577.19 
0.00 $ 2.485.577.19 
 
$ 
 
73,304.00 
 
2,485,577.19 $ 
 
740,748.51 
 
14,740.43 4,648.34 1,284,282.89 21,900.00 
 
10,031.38 4,132.18 3,581,478.55 2,190.00 
 
4,825,452.91 
 
3,967.469.83 
 
$ 8.709,905.76 $ 8.306.050.45 
 
$ 2,485,577.19 $ 
 
74,997.66 $ 4,647,705.34 $ 15,505,765.37 $ 14,028,877.16 -3- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES 
YEAR ENDED JUNE 30, 1999 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations 
Capital Outlay Debt Service 
Principal Interest 
Total Expenditures 
_Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES} 
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Capital Leases Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory- Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 5,382,879.62 $ 27,391.00 
7,165,899.02 207,808.36 
$ 12,783,978.00 $ 
 
121,906.79 957,438.42 
313,579.69 
1,392,924.90 
 
$ 8,001,716.76 $ 
 
581,884.37 131,125.04 318,263.00 191,598.55 785,703.50 138,252.02 1,213,663.68 576,217.61 
9,436.80 53,725.27 
899.72 
 
154,624.12 
 
19,456.66 19,529.39 
 
$ 12,196,096.49 $ 
 
$ 
 
587,881.51 $ 
 
534,422.14 10,611.63 32,452.59 30,512.54 
70.00 13,764.12 2,180.90 779,782.14 
12,704.62 180.65 
1,416,681.33 -23,756.43 
 
$ 
 
367,162.00 
 
-366,486.56 
 
$ 
 
675.44 
 
$ 
 
588,556.95 $ 
 
3,232,259.02 
 
-23,756.43 112,049.97 
4,709.05 516.16 
 
FUND BALANCE JUNE 30 
The notes to the general purpose financial statements are an integral part of this statement -4- 
 
$ 338203815.97 $ 
 
93,518.75 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Onl:t} YEAR ENDED 
 
JUNE 301 1999 
 
JUNE 30, 1998 
 
$ 1,776,560.40 
$ 204,674.49 
 
$ 
1,898,353.58 64,256.35 
 
7,281,346.81 $ 984,829.42 
9,064,252.60 790,318.89 
 
5,350,443.91 838,353.99 
6,898,982.68 741,466.12 
 
$ 1,981,234.89 $ 1,962,609.93 $ 18,120,747.72 $ 13,829,246.70 
 
$ 4,258,720.55 
$ $ 4,258,720.55 $ $ -2,277.485.66 $ 
 
$ 
217,781.25 217,781.25 $ 1,744,828.68 $ 
 
8,536,138.90 $ 
592,496.00 163,577.63 318,263.00 222,111.09 785,703.50 138,252.02 1,213,733.68 576,217.61 
23,200.92 55,906.17 780,681.86 
4,413,344.67 
32,161.28 237,491.29 
18,089,279.62 $ 
31.468.10 $ 
 
7,405,948.92 
531,604.11 219,514.93 274,901.82 212,448.75 744,392.42 248,607.48 850,945.07 706,500.04 
9,062.40 61,067.25 720,481.98 18,750.00 1,062,961.70 
249,483.19 15,982.03 
13,332,652.09 
496,594.61 
 
$ 
 
366,486.56 
 
$ 
 
366.486.56 
 
$ 
 
18,874.38 
 
$ 
 
367,162.00 
 
366,486.56 
 
-366,486.56 
 
4,300,000.00 
221,486.45 -221,486.45 
 
$ 
 
367,162.00 $ 4,318,874.38 
 
$ -1,910,999.10 $ 4,220,992.95 
 
1,744,828.68 $ 740,748.51 
 
398,630.10 $ 8,306,050.45 
 
4,815,468.99 3,490,288.90 
 
4,709.05 516.16 
 
1,345.48 -1,052.92 
 
$ 2,309,993.85 $ 2,485,577.19 $ 8.709,905.76 $ 81306,050.45 
 
-5- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1999 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 4,774,376.22 $ 60,000.00 
6,231,193.00 104,550.00 
 
5,382,879.62 27,391.00 
7,165,899.02 207,808.36 
 
Total Revenues 
 
$11,170,119.22 $ 12,783,978.00 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations 
Capital Outlay Debt Service 
 
$ 7,557,904.00 $ 8,001,716.76 
 
546,547.00 181,076.00 313,746.00 206,911.00 771,955.00 140,321.00 933,403.00 576,783.00 
11,000.00 73,800.00 
900.00 
 
581,884.37 131,125.04 318,263.00 191,598.55 785,703.50 138,252.02 1,213,663.68 576,217.61 
9,436.80 53,725.27 
899.72 
 
130,000.00 41,520.00 
 
154,624.12 38,986.05 
 
Total Expenditures 
 
$ 11,485,866.00 $ 12, 196,096.49 
 
Excess of Revenues over (under) Expenditures 
 
$ -315,746.78 $ 587,881.51 
 
OTHER FINANCING SOURCES <USES} 
 
Other Sources Other Uses 
 
$ 367,162.00 -366,486.56 
 
Total Other Financing Sources (Uses) 
 
$ 
 
675.44 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
$ -315,746.78 $ 
 
588,556.95 
 
FUND BALANCE J!.!LY 1, 1998 
 
3, 150,636.44 3,232,259.02 
 
Adjustments Food Inventory - Net Change in Period 
Donated Commodities Purchased Food 
 
30.00 
 
FUND BALANCE J!,!NE 30, 1999 
 
$ 2,834,919.66 $ 3,820,815.97 
 
The notes to the general purpose financial statements are an integral part of this statement 
 
-7- 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 59,668.79 $ 121,906.79 
 
800,642.00 
 
957,438.42 
 
300,988.00 
 
313,579.69 
 
$1,161,298.79 $ 1,392,924.90 
 
$ 364,487.73 $ 534,422.14 
 
32,336.00 
 
10,611.63 32,452.59 
 
27,536.00 
 
30,512.54 
 
8,051.00 2,500.00 801,646.00 
 
70.00 
13,764.12 2,180.90 779,782.14 
 
3,318.00 
 
12,885.27 
 
$ 1,239,874.73 $ 1,416,681.33 
 
$ -78,575.94 $ -23,756.43 
 
$ -78,575.94 $ -23,756.43 
 
114,248.21 
 
112,049.97 
 
4,709.05 516.16 
 
$ 35,672.27 $ 93,518.75 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Rabun County Board of Education (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general pwpose financial statements. 
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives. 
-8- 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: 
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Agency funds are purely custodial in nature and do not involve measurement ofresults of operations. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. 
Expenditures are generally recognized when the related fund liability is incurred. 
-9- 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1998 and ending in early June 1999. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. 
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. 
BUDGET 
The Rabun County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. 
RECEIVABLES 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
-10- 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
PROPERTY TAXES 
 
The Rabun County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 6, 1998 (levy date). Taxes were due on January 20, 1999. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Rabun County Tax Commissioner bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board. 
 
The tax millage rate levied for the 1998 tax year (calendar year) for the Rabun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
7.8848 mills 
 
SALES TAXES 
 
Local Option Sales Tax collected by the State and remitted to the Board during the fiscal year amounted to $1,882,425.12 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the Board. 
 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,897,169.72 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $5,425,932.60 has been collected or on December 31, 2002, whichever occurs first. 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
GENERAL OBLIGATION BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuancecosts, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the 
 
- 11 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Tenn Debt Account Group. 
INTERFUND TRANSACTIONS 
The Board has the following types of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions and reimbursements. 
MEMORANDUM ONLY -TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. 
Note 2: DEPOSITS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one ofor any combination ofthe following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,  
 
- 12 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 2: DEPOSITS 
 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
 
(5) Bonds of any public authority created by the laws ofthe Sta,te of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $3,930,883.99. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or _by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1999, as follows: 
 
Risk Categozy 
 
Bank Balance 
 
1 
 
$2,316,128.92 
 
2 
 
997,491.07 
 
3 
 
617,264.00 
 
Total 
 
$ 3.930.883.99 
 
- 13 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1999 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years. 
The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk' pool organized on December 1, 1991 to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent All Employees 
 
$ 100,000.00 $ 50,000.00 
 
- 14- 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 5: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES The Rabun County Board of Education has entered into various lease agreements as lessee for computer equipment, copiers and energy saving equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose General Government - Series 1998 
 
Interest Rates 4.00%-4.10% 
 
Amount $ 4.300.000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows: 
 
Balance July 1, 1998 
Additions Capital Leases 
Deductions Payments 
Balance June 30, 1999 
 
Capital L~ases 
 
General Obligation 
Bonds 
 
TQtal 
 
$ 12,704.62 $ 4,300,000.00 $ 4,312,704.62 
 
367,162.00 
 
367,162.00 
 
32,161.28 
 
32,161,28 
 
$ 347.705.34 $ 4.300.000.00 $ 4.647.705.34 
 
At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
2000 2001 2002 2003 2004 2005 -2009 
Total Principal and Interest 
Deduct: Imputed Interest 
Net Present Value ofFuture Minimum Lease Payments 
 
Capital Le~~ 
$ 46,526.95 50,297.40 50,297.40 50,297.40 45,245.40 12~.Hi3.4Q 
$ 437,827.95 
90.122,!H 
 
General Obligation 
BQnds 
$ 174,225.00 1,524,225.00 1,570,225.00 1,561,500.00 
$ 4.830.175.00 
 
Total Debt 
$ 220,751.95 1,574,522.40 1,620,522.40 1,611,797.40 45,245.40 19~.1'23.40 
$ ~.268,002.9~ 
 
$ 347.705.34 
 
- 15 - 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note6: ON-BEHALFPAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of$232,026.15 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. 
 
Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$171,522.85 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System {TRS) Employer's Cost In the amount of$20,873.30 
 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$39,630.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999, together with funding available: 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
Rabun County Middle and High Schools Additions and Renovations 
 
$ 6.976.200.03 $ 195.205.60 
 
The amounts described in this note are not reflected in the general purpose financial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
- 16- 
 
 RABUN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1999 
 
Note 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
1999 1998 1997 
 
100% 100% 100% 
 
$ 854,137.78 $ 762,758.92 $ 686,848.69 
 
- 17 - 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1999 
 
EXHIBIT"E" 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY 
 
FEDERAL 
 
TOTALS 
 
PROGRAMS PROGRAMS JUNE 30, 1999 JUNE 30, 1998 
 
$ 118,591.67 
 
$ 118,591.67 $ 141,155.16 
 
2,188.77 $ 39,516.06 $ 328,425.72 
 
370,130.55 
 
96,613.09 
 
14,740.43 4,648.34 
 
14,740.43 4,648.34 
 
10,031.38 4,132.18 
 
Total Assets 
 
-======== $ 140,169.21 $ 39,516.06 $ 328,425.72 $ 508,110.99 $ 251,931.81 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
 
$ $ 2,992.48 
43,657.98 
 
39,516.06 $ 276,658.62 $ 
13,071.96 38,602.90 
92.24 
 
$ 46,650.46 $ 39,516.06 $ 328,425.72 $ 
 
316,174.68 $ 
16,064.44 82,260.88 
92.24 
414,592.24 $ 
 
47,532.27 16,055.03 76,294.54 
139,881.84 
 
$ 14,740.43 
4,648.34 
74,129.98 $ 
$ 93,518.75 $ 
 
0.00 $ 0.00 $ 
 
$ 
0.00 
0.00 $ 
 
14,740.43 $ 
4,648.34 
74,129.98 
93,518.75 $ 
 
10,031.38 4,132.18 
97,886.41 
112,049.97 
 
Total Liabilities and Fund Equity 
 
$ 140,169.21 $ 39,516.06 $ 328,425.72 $ 508,110.99 $ 251,931.81 
 
See notes to the general purpose financial statements. 
 
-18- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1999 
 
EXHIBIT"F" 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Central Support Services Other Support Services Food Services Operation Community Services Operations 
Debt Service Principal Interest 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998 
 
$ 52,052.00 $ 390,394.02 313,579.69 
 
44,784.79 $ 25,070.00 $ 567,044.40 
 
121,906.79 $ 957,438.42 313,579.69 
 
131,350.00 786,097.55 316,069.62 
 
$ 756,025.71 $ 44,784.79 $ 592,114.40 $ 1,392,924.90 $ 1,233,517.17 
 
$ 31,899.52 $ 502,522.62 $ 534,422.14 $ 360,276.70 
 
$ 779,782.14 
 
10,611.63 32,452.59 30,512.54 
70.00 13,764.12 2,180.90 
 
10,611.63 32,452.59 30,512.54 
70.00 13,764.12 2,180.90 779,782.14 
 
6,873.75 36,749.44 21,284.86 
4,824.80 719,656.48 
18,750.00 
 
12,704.62 180.65 
 
12,704.62 180.65 
 
53,000.00 
 
$ 779,782.14 $ 44,784.79 $ 592,114.40 $ 1,416,681.33 $ 1,221,416.03 
 
$ -23,756.43 $ 
 
0.00 $ 
 
0.00 $ -23,756.43 $ 
 
12,101.14 
 
$ -23,756.43 $ 112,049.97 
4,709.05 516.16 
 
0.00 $ 0.00 
 
584.21 
 
0.00 $ 0.00 
 
-23,756.43 $ 112,049.97 
 
12,685.35 99,072.06 
 
4,709.05 516.16 
 
1,345.48 -1,052.92 
 
FUND BALANCE JUNE 30 
 
$ 93,518.75 $ 
 
0.00 $ 
 
0.00 $ 93,518.75 $ 112,049.97 
 
See notes to the general purpose financial statements. 
 
-19- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1999 
 
EXHIBIT"G" 
 
Cash and Cash Equivalents 
 
REGULAR 
 
BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
TOTALS JUNE 30, 1999 JUNE 30, 1998 
 
$ 1,003,810.96 $ 1,284,282.89 $ 
 
426,160.15 $ 2,7141254.00 $ 4,294,992.95 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Retainages Payable 
FUND EQUITY 
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
404,260.15 $ 404,260.15 $ 
 
74,000.00 
 
$ 1,284,282.89 $ 
 
$ 1,003,810.96 
 
0.00 
 
$ 1,003,810.96 $ 1,284,282.89 $ 
 
$ 1,284,282.89 $ 3,581,478.55 
 
21,900.00 
 
21,900.00 
 
2,190.00 
 
0.00 
 
1,003,810.96 
 
637,324.40 
 
21,900.00 $ 2,309,993.85 $ 4,220,992.95 
 
Total Liabilities and Fund Equity 
 
$ 1,003,810.96 $ 1,284,282.89 $ 
 
426,160.15 $ 2,714,254.00 $ 4,294,992.95 
 
See notes to the general purpose financial statements. 
 
-20- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1999 
 
EXHIBIT"H" 
 
REVENUES 
 
REGULAR 
 
BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
TOTALS YEAR ENDED JUNE 301 1999 JUNE 301 1998 
 
State Funds Other Funds 
 
$ 1,TT6,560.40 $ 1,TT6,560.40 
 
$ 
 
0.00 $ 155,120.44 
 
49,554.05 
 
204,674.49 $ 
 
88,201.46 
 
Total Revenues 
 
$ 
 
0.00 $ 155,120.44 $ 1,826,114.45 $ 1,981,234.89 $ 
 
88,201.46 
 
EXPENDITURES 
 
Current Support Services Business Administration 
Capital Outlay Building and Building Improvements 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
$ 4,258,720.55 $ 4,258,720.55 
 
114,481.39 909,546.80 
 
Total Expenditures 
 
$ 
 
0.00 $ 
 
0.00 $ 4g58,720.55 $ 4,258,720.55 $ 1,024,028.19 
 
Excess of Revenues over (under) Expenditures 
 
$ 
 
OTHER FINANCING SOURCES (USES} 
 
0.00 $ 155,120.44 $ -2,432,606.10 $ -2,2TT1485.66 $ -935,826.73 
 
Proceeds from General Obligation Bonds Par Value 
Operating Transfers In Operating Transfers Out 
 
$ 366,486.56 
 
$ 
 
$ -2,452,316.10 
 
$ 2,452,316.10 $ 2,818,802.66 
-2,452,316.10 
 
4,300,000.00 909,546.80 -688,644.56 
 
Total Other Financing Sources (Uses) $ 366,486.56 $ -2,452,316.10 $ 2,452,316.10 $ 366,486.56 $ 4,520,902.24 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
$ 366,486.56 $ -2,297,195.66 $ 
 
19,710.00 $ -1,910,999.10 $ 3,585,075.51 
 
FUND BALANCE JULY 1 
 
637,324.40 
 
3,581,478.55 
 
2,190.00 
 
4,220,992.95 
 
635,917.44 
 
FUND BALANCE JUNE 30 
 
$ 110031810.96 $ 112841282.89 $ 
 
211900.00 $ 213091993.85 $ 412201992.95 
 
See notes to the general purpose financial statements. 
 
-21- 
 
 ASSETS Cash and Cash Equivalents Accounts Receivable 
Total Assets 
FUND EQUITY Fund Balances 
Reserved For Debt Service 
Unreserved Undesignated 
Total Fund Equity 
 
RABUN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 1999 
 
EXHIBIT "I" 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 1999 
 
JUNE 30, 1998 
 
$ 
 
45,114.24 $ 2,112,916.13 $ 2,158,030.37 $ 
 
473,528.76 
 
327,546.82 
 
327,546.82 
 
267,219.75 
 
$ 
 
45114.24 $ 2,440,462.95 $ 2,485,577.19 $ ==7=4=0,.,.74=8=.5==1= 
 
$ 
 
45,114.24 $ 2,440,462.95 $ 2,485,577.19 $ 
 
740,748.51 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
$ 
 
45,114.24 $ 2,440,462.95 $ 2,485,577.19 $ _===7=4=0,.,.74=8=.5=1= 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1999 
 
EXHIBIT"J" 
 
REVENUES 
Taxes Other Funds 
Total Revenues EXPENDITURES 
Debt Service Interest 
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES 
Accrued Interest on Bonds Sold Excess of Revenues and Other Financing Sources 
over (under) Expenditures FUND BALANCE JULY 1 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 1999 
 
JUNE 30, 1998 
 
$ 
 
1,183.86 $ 1,897,169.72 $ 1,898,353.58 $ 
 
677,347.12 
 
2,101.18 
 
62,155.17 
 
64,256.35 
 
5,752.98 
 
$ 
 
3,285.04 $ 1,959,324.89 $ 1,962,609.93 $ 
 
683,100.10 
 
$ 
 
0.00 $ 
 
217,781.25 $ 
 
217,781.25 $ 
 
0.00 
 
$ 
 
3,285.04 $ 1,741,543.64 $ 1,744,828.68 $ 
 
683,100.10 
 
18,874.38 
 
$ 
 
3,285.04 $ 1,741,543.64 $ 1,744,828.68 $ 
 
701,974.48 
 
41,829.20 
 
698,919.31 
 
740,748.51 
 
38 774.03 
 
FUND BALANCE JUNE 30 
 
$ 
 
45114.24 $ 2,440,462.95 $ 2,485,577.19 $====14..o.1..4.=8.=s1... 
 
See notes to the general purpose financial statements. 
 
-23- 
 
 BREWER SQHOLARSHIP 
ASSETS Cash and Cash Equivalents 
 
RABUN COUNTY BOARD OF EDUCATIQN l:;OMBININ~ STATEMENT OF CHANGES IN ASS!;TS AND LIABILITIE 
FIDUQIARY FUND TYPE - AGENCY F!,!NDS YEAR ENDED J!,!NE 30. 1999 
 
EXHIBIT"K" 
 
BALANCE JULY 1, 1998 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 1999 
 
$ 
 
0.00 $ 
 
29,559.89 $ 
 
0.00 $ 
 
29,559.89 
 
LIABILITIES Funds Held for Others 
 
$ 
 
0.00 $ 
 
29,559.89 $ 
 
0.00 $ 
 
29,559.89 
 
CARY UTTLES CHOLARSHIP 
ASSETS Cash and Cash Equivalents 
 
$ 
 
0.00 $ 
 
3,000.00 $ 
 
3,000.00 $ 
 
0.00 
 
LIABILITIES Funds Held for Others 
 
$ 
 
0.00 $ 
 
3,000.00 $ 
 
3,000.00 $ 
 
0.00 
 
J. Q. KING QHQLARSHIP 
ASSETS Cash and Cash Equivalents 
 
$ 
 
n.74 s 
 
0.00 $ 
 
0.00 $ 
 
TT.74 
 
LIABILITIES Funds Held for Others 
 
$ 
 
n.74 s 
 
0.00 $ 
 
0.00 $ 
 
n.74 
 
LAKE RABUN ASOQIATION/QbAYTQN TBIB!.!N!; CHQLARSHIP FOUNDATIQN F!,!ND 
ASSETS Cash and Cash Equivalents 
 
$ 
 
4,394.18 $ 
 
a,000.00 $ 
 
10,500.00 $ 
 
1,894.18 
 
LIABILITIES Funds Held for Others 
 
$ 
 
4,394.18 $ 
 
8,000.00 $ 
 
10,500.00 $ 
 
1,894.18 
 
M!,!SIC/ART C!::lQLARHIP FQ!.!NDATIQN F\.!ND 
ASSETS Cash and Cash Equivalents 
 
$ 
 
2,800.00 $ 
 
1,549.90 $ 
 
0.00 $ 
 
4,349.90 
 
LIABILITIES Funds Held for Others 
 
$ 
 
2,800.00 $ 
 
1,549.90 $ 
 
0.00 $ 
 
4,349.90 
 
eAN!;LL QHQbARHIP 
ASSETS Cash and Cash Equivalents 
 
$ 
 
0.00 $ 
 
25,485.13 $ 
 
1,500.00 $ 
 
23,985.13 
 
LIABILITIES Funds Held for Others 
 
$ -24- 
 
0.00 $ 
 
25.485.13 $ 
 
1,500.00 $ 
 
23,985.13 
 
 RABUN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSET~ AND Ll8BILITIE~ 
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1999 
 
EXHIBIT "K" 
 
PARKIN/KRIVSKY SCHOLARSHIP 
ASSETS Cash and Cash Equivalents 
 
BALANCE JULY 1, 1998 
 
ADDITIONS 
 
DEDUCTIONS 
 
BALANCE JUNE 30, 1999 
 
$ 
 
2:000.00 $ 
 
1:000.00 $ 
 
1,000.00 $ 
 
2,000.00 
 
LIABILITIES Funds Held for Others 
 
$ 
 
2,000.00 $ 
 
1:000.00 $ 
 
1:000.00 $ 
 
2:000.00 
 
RABUN COUNTY SCHOLABSHIP FOUNDATION FUND 
ASSETS Cash and Cash Equivalents 
 
$ 
 
10,576.09 $ 
 
11,865.00 $ 
 
11,000.00 $ 
 
11441.09 
 
LIABILITIES Funds Held for Others 
 
$ 
 
10,576.09 $ 
 
11:865.00 $ 
 
11:000.00 $ 
 
11 441.09 
 
WILDER SCHOLARSHIP FOUNDATION 
ASSETS Cash and Cash Equivalents 
 
$ 
 
100.00 $ 
 
1,100.00 $ 
 
500.00 $ 
 
700.00 
 
LIABILITIES Funds Held for Others 
 
$ 
 
100.00 $ 
 
1100.00 $ 
 
500.00 $ 
 
700.00 
 
WILLIAM L. BROOKSHIRE SCHOLARSHIP 
ASSETS Cash and Cash Equivalents 
 
$ 
 
904.39 $ 
 
585.34 $ 
 
500.00 $ 
 
989.73 
 
LIABILITIES Funds Held for Others 
 
$ 
 
904.39 $ 
 
585.34 $ 
 
500.00 $ 
 
989.73 
 
TQTALS -AGENCY F!,!NDS 
ASSETS Cash and Cash Equivalents 
 
$ 
 
20,852.40 $ 
 
82:145.26 $ 
 
28,000.00 $ 
 
741997.66 
 
LIABILITIES Funds Held for Others 
 
$ 
 
20:852.40 $ 
 
82:145.26 $ 
 
28:000.00 $ 
 
74:997.66 
 
See notes to the general purpose financial statements. 
 
-25- 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 1999 
 
SCHEDULE 1 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASS- 
THROUGH ENTITY ID NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant - 
 
* 10.553 * 10.555 
 
N/A $ NIA 
 
82,370.51 260,613.19 $ 
 
(2) 732,371.82 (3) 
 
Total Child Nutrition Cluster 
 
$ 
 
342,983.70 $ 
 
732,371.82 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Food and Nutrition Program 
 
Food Distribution Program (1) 
 
10.550 
 
NIA 
 
Pass-Through From Office of Treasury and Fiscal Services 
 
National Forest Reserve Funds 
 
10.665 
 
N/A 
 
47,410.32 27,391.00 
 
47,410.32 {4} 
 
Total U. S. Department of Agriculture 
 
$ 
 
417,785.02 $ 
 
779,782.14 
 
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement 1999 Grant Flow Through 1999Grant Preschool 1999 Grant 
 
84.173 84.027 84.173 
 
NIA $ NIA NIA 
 
1,151.58 $ 
119,793.16 27,046.60 
 
1,151.58 119,793.16 
27,046.60 
 
Total Special Education Cluster 
 
$ 
 
147,991.34 $ 
 
147,991.34 
 
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1999 Grant Title II Eisenhower Professional Development 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant Goals2000 State and Local Education Systemic Improvement Grants 1999 Grant 
 
84.010 
 
N/A 
 
84.281 
 
NIA 
 
84.298 
 
NIA 
 
84.276 
 
NIA 
 
242,603.06 18,500.00 10,872.00 
 
242,603.06 18,500.00 10,872.00 
 
128,043.00 
 
128,043.00 
 
-26- 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 1999 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Education, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant 
Total U. S. Department of Education 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84.048 84.243 
 
N/A $ NIA 
$ 
 
14,035.00 $ 5,000.00 567,044.40 $ 
 
14,035.00 5,000.00 567,044.40 
 
Total Federal Financial Assistance 
 
$ 
 
984,829.42 $ 
 
NIA = Not Available 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1)  The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1999 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. 
(4) Funds earned on this program do not require reporting of expenditures. 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
The Board did not provide Federal Assistance to any Subrecipienl 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Rabun County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. 
 
1,346,826.54 
 
See notes to the general purpose financial statements. 
 
-27- 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
GRANTS 
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost_ Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Records Teachers' Retirement Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
Office of Treasury and Fiscal Services Public School Employees Retirement 
CONTRACTS 
Education, Georgia Department of Georgia's Reading Challenge Grades 4-8 Reading First Program 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 4,694,369.00 
722,513.00 68,265.00 
196,350.00 50,806.00 
1,235,098.00 
 
328,417.00 106,234.00 
36,113.00 108,229.00 189,327.00 
45,974.00 192,854.00 
20,602.00 28,842.00 -3, 112,294.00 -911,205.00 1,004,032.00 
$ 
11,879.00 
 
52,052.00 
 
38,500.00 3,581.66 
171,522.85 7,400.00 2,754.00 
27,545.00 2,295.56 1,490.25 
20,873.30 8,953.00 
 
5,268.79 39,516.00 
 
$ 4,694,369.00 
722,513.00 68,265.00 
196,350.00 50,806.00 
1,235,098.00 
328,417.00 106,234.00 
36,113.00 108,229.00 189,327.00 
45,974.00 192,854.00 
20,602.00 28,842.00 -3, 112,294.00 -911,205.00 1,004,032.00 52,052.00 11,879.00 
38,500.00 3,581.66 
171,522.85 7,400.00 2,754.00 
27,545.00 2,295.56 1,490.25 
20,873.30 8,953.00 
5,268.79 39,516.00 
 
39,630.00 
 
$ 1,776,560.40 
 
1,776,560.40 
 
39,630.00 
 
41,929.00 
 
25,070.00 
 
41,929.00 25,070.00 
 
$ 5,382,879.62 $ 121,906.79 $ 1,776,560.40 $ 7,281,346.81 
 
See notes to the general purpose financial statements. 
 
-28- 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 1999 
 
SCHEDULE "3" 
 
PROJECT 
Acquisition, construction and equipping additional classrooms, instructional and support space at the middle/high school, renovating, equipping and modifying existing classrooms, instructional and support space at said school, providing for payment or reimbursement of the costs of rerouting and storm drainage improvements at said school, functional additional capital projects, including acquisition, construction and equipping additional classrooms, instructional and support space and remodeling and renovating existing classroom, instructional and support space at existing school facilities and paying expenses incident thereto 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS 
 
$ 8,000,000.00 $ 11,000,000.00 $ 4,476,501.80 $ 909,546.80 
 
(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. 
(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. 
(3) The voters of Rabun County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. 
 
See notes to the general purpose financial statements. 
 
-29- 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1999 
 
SCHEDULE "4" 
 
EXPENDITURES 
Current Instruction 
Debt Service Principal Interest 
 
ASSISTIVE TECHNOLOGY 
 
COMPUTERS INTHE 
CLASSROOM 
 
TOTAL 
 
$ 
 
5,268.79 $ 
 
26,630.73 $ 
 
31,899.52 
 
12,704.62 180.65 
 
12,704.62 180.65 
 
Total Expenditures 
 
$ 
 
5,268.79 $ 
 
39,516.00 $ ====44=,7=84=.7=9 
 
See notes to the general purpose financial statements. - 30- 
 
 RABUN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999 
 
SCHEDULE "5" 
 
Minimum Expenditure Requirements (Total Allotment} 
Expenditures on Combined Program Basis Salaries (1} (2) Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
5,845,574.00 $ 
 
172,513.00 
 
$ 
 
6,717,160.12 
 
386,916.21 $ _____34.;.;:6:.:.;,6:a.,;1;.::.9.:.;;.6..:..1 
 
$ 
 
7,104,076.33 
 
-106,188.54 $ _ _..;..6=,99.a..;7-"',8;..;;8..;...7."'-79.;... 
 
Amount of Underexpenditure for Total Allotment 
 
$ 
 
0.00 $=======0.=00= 
 
-Note: (1) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
(2) Salary accruals (July and August 1998 Deferred Salaries) reported . as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
See notes to the general purpose financial statements. - 31 - 
 
 RABUN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30.1999 
 
GENEBt,L AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs 
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*) Sub-Total - Regular Category VI (Gifted)(*) Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM (*l Total Fourteen Weighted Programs 
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs 
Total Fourteen Weighted and Media Center Programs 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 1999 Deferred 
Salaries) reported as expenditures in the General Purpose Financial Statements are not included 
on this analysis in order to comply with program 
guidelines. 
See notes to the general purpose financial statements. 
 
- 32  
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF 
 
REQUIRED 
 
ORIGINAL _:te_ 
 
ORIGINAL 
 
MID-TERM 
 
$ 
 
524,827.00 
 
$ 
 
472,344.30 $ 
 
1,384,634.00 
 
1,246, 170.60 
 
$ 1,909,461.00 90 $ 1,718,514.90 $ 
 
613,824.00 90 
 
552,441.60 
 
1,029,478.00 90 
 
926,530.20 
 
541,552.00 90 
 
487,396.80 
 
360,604.00 90 
 
324,543.60 
 
239,450.00 90 
 
215,505.00 
 
$ 4,694,369.00 
 
$ 4,224,932.10 $ 
 
8,527.00 -3,860.00 4,667.00 39,416.00 -84,755.00 50,437.00 18,080.00 13,674.00 41,519.00 
 
$ 
 
663,804.00 
 
$ 
 
597,423.60 $ 
 
122,967.00 
 
$ 
 
663,804.00 90 $ 
 
597,423.60 $ 
 
58,709.00 90 
 
52,838.10 
 
$ 
 
722,513.00 
 
$ 
 
650,261.70 $ 
 
$ 
 
68,265.00 90 $ 
 
61,438.50 $ 
 
$ 5,485,147.00 
 
$ 4,936,632.30 $ 
 
122,967.00 22,404.00 
145,371.00 -25,398.00 161,492.00 
 
$ 
 
157,989.00 90 $ 
 
142,190.10 $ 
 
38,361.00 100 
 
38,361.00 
 
$ 
 
196,350.00 
 
$ 
 
180,551.10 $ 
 
1,550.00 1,035.00 
2,585.00 
 
$ 5,681,497.00 
 
$ 5,117,183.40 $ 
 
164,077.00 
 
$ 
 
16,039.00 
 
34,767.00 
 
$ 
 
16,039.00 $ 
 
34,767.00 
 
$ 
 
50,806.00 100 $ 
 
50,806.00 $ 
 
(2) Salary accruals (July and August 1998 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
712.00 0.00 
712.00 
 
 SCHEDULE "6" 
 
EDUCATION TOTAL 
REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES (1 )(2) OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
480,871.30 $ 
 
500,727.60 $ 
 
11,677.03 $ 
 
512,404.63 
 
1,242,310.60 
 
1,463,977.86 
 
52,713.30 
 
1,516,691.16 
 
$ 1,723,181.90 $ 1,964,705.46 $ 
 
64,390.33 $ 2,029,095.79 $ 
 
0.00 
 
591,857.60 
 
769,928.08 
 
23,554.09 
 
793,482.17 
 
0.00 
 
841,775.20 
 
1,193,297.79 
 
52,969.89 
 
1,246,267.68 
 
0.00 
 
537,833.80 
 
766,031.64 
 
82,841.77 
 
848,873.41 
 
0.00 
 
342,623.60 
 
340,110.76 
 
16,683.10 
 
356,793.86 
 
0.00 
 
229,179.00 
 
347,781.20 
 
33,324.91 
 
381,106.11 
 
0.00 
 
$ 4,266,451.10 $ 5,381,854.93 $ 
 
273,764.09 $ 5,655,619.02 
 
$ 
 
720,390.60 
 
$ 
 
9,357.62 $ 220,771.01 554,733.17 
50,846.50 25,623.66 
 
852.33 $ 2,893.88 58,653.50 3,089.76 2,124.19 
 
10,209.95 223,664.89 613,386.67 
53,936.26 27,747.85 
 
$ 
 
720,390.60 $ 
 
861,331.96 $ 
 
67,613.66 $ 
 
928,945.62 
 
0.00 
 
75,242.10 
 
111,494.36 
 
4,106.86 
 
115,601.22 
 
0.00 
 
$ 
 
795,632.70 $ 
 
972,826.32 $ 
 
71,720.52 $ 1,044,546.84 
 
$ 
 
36,040.50 $ 
 
97,651.93 $ 
 
1,135.00 $ 
 
98,786.93 
 
0.00 
 
$ 5,098,124.30 $ 6,452,333.18 $ 
 
346,619.61 $ 6,798,952.79 
 
$ 
 
143,740.10 $ 
 
264,826.94 
 
$ 
 
264,826.94 
 
0.00 
 
39,396.00 
 
$ 
 
40,296.60 
 
40,296.60 
 
0.00 
 
$ 
 
183,136.10 $ 
 
264,826.94 $ 
 
40,296.60 $ 
 
305,123.54 
 
$ 5,281,260.40 $ 6,717,160.12 $ 
 
386,916.21 $ 7,104,076.33 $ 
 
0.00 
 
$ 
 
16,751.00 
 
34,767.00 
 
s ===s=1;;;,s=1s==o.o. 
 
$ 
 
42,733.20 $ 
 
42,733.20 
 
9,344.02 
 
9,344.02 
 
$ 
 
52,077.22 $ 
 
52,077.22 $ =======0==00= 
 
 33  
 
 SECTION II COMPLIANCE AND INTERNAL CON1ROL REPORTS 
 
 w. RUSSELL HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April 14, 2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Rabun County Board ofEducation 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING 
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 
GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements of Rabun County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated April 14, 2000. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 
Compliance 
As part of obtaining reasonable assurance about whether Rabun County Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered Rabun County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. 
99YB-40 
 
 However, we noted a certain matter involving the internal control over :financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over :financial reporting that, in our judgement, could adversely affect Rabun County Board of Education's ability to record, process, summarize and report :financial data consistent with assertions of management in the :financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7191-99-01. 
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the :financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over :financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. 
This report is intended solely for the information and use of management, members of the Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
 
RWH:gp 99YB-40 
 
State Auditor 
 
 RussELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
April14,2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Rabun County Board of Education 
REPORT ON COMPLIANCE WITH REQU]REMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Rabun County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 1999. Rabun County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Rabun County Board of Education's management. Our responsibility is to express an opinion on Rabun County Board ofEducation's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Rabun County Board of 
Education's compliance with those requirements and performing such other procedures as we considered 
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Rabun County Board ofEducation's compliance with those requirements. 
 
99SA-10 
 
 In our opinion, the Rabun County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1999. 
Internal Control Over Compliance 
The management of Rabun County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Rabun County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. 
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use of management, members of the Rabun County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
r?bA~ w.4~ I~ell W. Hinton State Auditor 
_RWH:gp 99SA-10 
 
 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 RABUN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1999 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7191-97-01 FS-7191-98-01 
 
Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7191-98-01 
 
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of General Fixed Assets on the financial statements. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 RABUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1999 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Rabun County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 
2. Reportable Conditions in Internal Control _Disclosed by the Audit of the Financial Statements The audit report for the Rabun County Board of Education disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit of the Rabun County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Rabun County Board ofEducation did not disclose any reportable conditions in'internal control over major programs. 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Rabun County Board of Education's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Required to be Re.ported by Section .510(a) ofOMB Circular A-133 The Rabun County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Rabun County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. 
- 1- 
 
 RABUN COUNTY BOARD OF EDUCATION 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1999 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7191-99-01 The Rabun County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose :financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. 
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
No matters were reported. 
-2-